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A company currently produces three products from a joint process. The joint process has total costs of $288,000 per month. All three products, A, B

A company currently produces three products from a joint process. The joint process has total costs of $288,000 per month. All three products, A, B and C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:

Product Units Immediate Sales Price Later Sales Price Unit Cost of Further Processing
A 46,000 $ 7 $ 11 $ 6.00
B 92,000 8 12 3.00
C 138,000 10 16 7.00

Required:

a-1. Should Product A be sold immediately or sold after processing further?

a-2. How much will the decision affect profit?

b-1. Should Product B be sold immediately or sold after processing further?

b-2. How much will the decision affect profit?

c-1. Should Product C be sold immediately or sold after processing further?

c-2. How much will the decision affect profit?

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